There's no doubt that greater yuan appreciation is a double-edged sword, causing all sorts of concerns for Chinese consumers and exporters. The advice analysts are giving is this: constant vigilance when it comes to observing exchange rate volatility.

The move to widen the trading band for the Chinese currency comes at a time when the pressure for the RMB to appreciate has eased somewhat.

Although the move was well-timed and largely expected, analysts warn of foreign exchange trading risks for China's exporters.

Chinese banks are advising investors be cautious when it comes to the exchange rate. The resilient exchange rate may increase risks of short-term capital inflows and speculative activity.

Liu Rui, branch manager of Huaxia Bank, Gong Zhu Fen Branch of Beijing, said, "Today is the first trading day since the new currency reform was implemented. We have posted a notice to inform our clients of the widening trading band. For instance, under the new currency regime, purchasing ten thousand U.S. dollars would lead to a 1000 yuan price gap between the highest and the lowest exchange rate within a day."

Still, Liu Rui also advised tourists to pay more attention to the latest exchange rate ahead of time, so as to save money. Otherwise, tourists could pay using the Unionpay card, which could reduce costs and risks during foreign exchange.

Moreover, with the greater flexibility of the yuan exchange rate, some analysts expect new demands on foreign exchange risk management tools. Exporters could buy financial derivatives to hedge exchange risks, while banks could strengthen risk management on foreign exchange assets.